The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.

The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton. Assets Accts. Rec + Supp. + Equip. - 3,200 + 6,000 + 34,000 = Liab. + Owner's Equity Accts. T. Cotton, Pay. + Capital + Rev. 7, 200 + 51,200 + 0 - Exp. 0 + 860 860 3,200.+ 6,000 + 34,000 = 7,200 + 51,200 + Cash + 15,200 + 860 14,340 + + 4,860 19,200 + - 2,200 17,000 + 0 + 4,860 4,860 - 3,200 + 6,000 + 34,000 - 51,200 + 860 7,200 + 2,200 5,000 + 51,200 + 860 Balances, May 1 Paid for utilities New balances Sold services for cash New balances Paid a creditor New balances Sold services on credit New balances Paid salaries New balances Paid telephone bill New balances Withdrew cash for personal expenses New balances 3,200 + 6,000 + 34,000 = + 3,000 6, 200 + 6,000 + 34,000 - 4,860 + 3,000 7,860 - 5,000 + 51,200 + 6,200 + 6,000 + 34,000 = 5,000 + 51,200 + 7,860 - 17,000 + - 9,000 8,000 + - 316 7,684 + 1,800 5,884 + 860 + 9,000 9,860 + 316 10,176 6,200 + 6,000 + 34,000 = 5,000 + 7,860 - 51,200 + 1,800 49, 400 + 6,200 + 6,000 + 34,000 = 5,000 + 7,860 10,176 Required: Analyze each transaction carefully. Prepare an income statement and a statement of owner's equity for the month. Prepare a balance sheet for May 31, 20X1. Analyze: In order to complete the balance sheet, which amount was transferred from the statement of owner's equity? COTTON CLEANING SERVICE Income Statement Month Ended May 31, 20X1 Revenue Expenses Total expenses 0 COTTON CLEANING SERVICE Statement of Owner's Equity Month Ended May 31, 20X1 0 $ 0 COTTON CLEANING SERVICE Balance Sheet May 31, 20X1 Assets Liabilities Owner's Equity $ $ $ Total Assets 0 Total Liabilities and Owner's Equity 0 Which amount was transferred from the statement of owner's equity? Owner's equity